Advertisement
Advertisement

Precious Metals Fundamental Analysis – August 18, 2015 – Forecast – Gold, Silver & Platinum

By:
Barry Norman
Updated: Aug 17, 2015, 10:59 UTC

Analysis and Recommendations: Gold gained $3.90 to 1116.60 as traders seem uncertain about the Fed and continue to look at Chinese moves to control their

Gold Rises upon Market Uncertainty

Precious Metals Fundamental Analysis – August 18, 2015 – Forecast - Gold, Silver & Platinum
Precious Metals Fundamental Analysis – August 18, 2015 – Forecast - Gold, Silver & Platinum
Analysis and Recommendations:

Gold gained $3.90 to 1116.60 as traders seem uncertain about the Fed and continue to look at Chinese moves to control their currency and the fall in equities. Silver added 17 points to 15.23 and Platinum added $2.35 to 996.35. Gold edged higher on Monday as concerns persisted over a weaker yuan after China devalued its currency last week, with the uncertainty likely to burnish bullion’s safe-haven appeal.

The weaker yuan could still prompt the U.S. Federal Reserve not to raise interest rates as soon as next month, as many had expected previously, despite continued signals of a strengthening U.S. economy.

Minutes from the Fed’s July 28-29 meeting due on Wednesday will offer vital clues about its plan to hike rates for the first time since 2006. Rebounding retail sales, solid jobs growth and rising construction all point to next month as gross domestic product stays above trend for the world’s largest economy.

Mizuho Bank senior economist Vishnu Varathan said the Fed minutes may “re-sensitize markets to U.S. data and solid prints may ignite firmer U.S. dollar and knock-on softer yuan fix.” A stronger dollar could weigh on gold.

China’s gold reserves rose to 53.93 million ounces by the end of July, up from 53.32 million at end-June, the central bank said. The data was released following a June adjustment that was the first in more than six years. China’s gold demand this year is expected to at least hold steady with last year at just under 1,000 tonnes, the World Gold Council said.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases:

Cur.

 

Event

Actual

Forecast

Previous

 

  JPY

 

GDP (QoQ) (Q2)  

-0.4%

-0.5%

1.1%

   

  JPY

 

GDP (YoY) (Q2)

-1.6%

-1.9%

4.5%

   

  EUR

 

Trade Balance (Jun)

26.4B

 

18.8B

 

 

  USD

 

NY Empire State Manufacturing Index

 

5.00

3.86

 

 

  CAD

 

Foreign Securities Purchases (Jun)

 

 

-5.45B

   

 

Gold(60 minutes)20150817065845

Upcoming Economic Events that you should be monitoring:

Tuesday, August 18, 2015

Cur.

 

Event

Actual

Forecast

Previous

 

  AUD

 

Monetary Policy Meeting Minutes

 

 

 

 

 

  GBP

 

CPI (YoY) (Jul)

 

 

 

 

 

  USD

 

Building Permits (Jul)

 

1.232M

1.337M

   

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug

 

About the Author

Did you find this article useful?

Advertisement